Child tax credits & Moving abroad

jyonda

Last summer I left the UK permanently to start working in Germany (new firm) then my wife and 2 kids followed me out about 6 weeks later. We now need to supply the CTC with income information for the 2007-08 period up until the children left the country (08.07) and I'm not sure if I should supply:
a) UK income information only 04.07-08.07.
b) UK & German income information 04.07-08.07
c) UK & German income information for entire 2007-2008 period.

C is because they base the CTC/WTC award on the known amount for the whole year but they've only asked for April to August so how can they figure it out or does it not matter? And are all amounts before tax or after?

If anyone has been in a similar situation or can offer any insight then please let me know. I would just like to know before I call them.
Thanks

[Deleted User]

Tax credits is based on the income for the full year. They need to work out how much you should be awarded for the period in which you claimed.

You should provide the income for the full financial year so 'C'.

jyonda

I phoned them up and it appears to be C. I told them that makes no sense as we didn't receive credits for the full year and our German earnings are irrelevant after the point we all left the country and were no longer resident in the UK. Sadly he could not 'engage' in that discussion and his computer could only accept dates for the entire tax year so in all likelyhood our 'award' will be based on a years income for a 3 month period!!!!!!!!

jyonda

For the benefit of anyone in this situation:

a. Income information for entire tax year is required, regardless of leaving date. The award is then claculated pro rata for the number of days you were entitled to claim. To my mind the amount earned whilst not being resident in the UK and not claiming should be irrelevant. They said "well its the same the other way round when a Polish worker comes here". WHAT? so someone coming from a country with a much lower living wage could come to the UK during the year and have their foreign income taken into account and an award made on that basis regardless if the cost of living there is actually far less! Well lucky them! I am not having a go at immigrants mind you, just the idiotic nonsensical tax benefit system currently opearting in the UK which if anything would fuel resentment to vital immigrant workers (vital because lazy toerags would rather collect benefits than pick veg. Make them toil in the fields for their benefits I say!).

b. Self employed income should be NET/ paye income is GROSS amount. This seems to be penalising PAYE as the income amount you ultimately end up with should apply in both or neither instance surely?

Having calculated every possible permutation of 2007/2008 earnings including currency conversion on the phone for the fourth time she then asked me for 2006/2007! Aaaaarghhhhhhhhh

Rant over.

[Deleted User]

Tax credits is based on a full year's income.

Your entitlement is calculated based on the full year's income - it is then broken down and paid per day. You will be paid up until the day you leave the UK.

They dont calculate that your yearly earnings were earned in a 3 month period!

bomberbarclay

I'm in the opposite position - returning from France to the UK in Jan 09 and need to lodge a claim for the 2008-9 tax year. Anyone know what I should be stating my income as ?

kei_2

a. Income information for entire tax year is required, regardless of leaving date. The award is then claculated pro rata for the number of days you were entitled to claim. To my mind the amount earned whilst not being resident in the UK and not claiming should be irrelevant. They said "well its the same the other way round when a Polish worker comes here". WHAT? so someone coming from a country with a much lower living wage could come to the UK during the year and have their foreign income taken into account and an award made on that basis regardless if the cost of living there is actually far less! Well lucky them! I am not having a go at immigrants mind you, just the idiotic nonsensical tax benefit system currently opearting in the UK which if anything would fuel resentment to vital immigrant workers (vital because lazy toerags would rather collect benefits than pick veg. Make them toil in the fields for their benefits I say!).

If you chose to disregard income earned from abroad, then you have someone work in the UK for 2 months for 5k then move abroad meaning their award is based on a annual income of 5k. Basically the same thing except the shoe is on the other boot.

I don't think its efficient to track peoples income on a daily basis, the actual system program is horribly inefficient this would probably cause the systems to melt.

Could argue that it should be based on the UK salary before they left but what happens if people move abroad for a better salary. At the end of the day it will always benefit some but will be unfair on some others.

b. Self employed income should be NET/ paye income is GROSS amount. This seems to be penalising PAYE as the income amount you ultimately end up with should apply in both or neither instance surely?

Gross self employed earnings are inclusive of expenses, PAYE you have no outgoings or it will be subsidized in the majority of cases. Net self employed earnings are simply there gross minus there expenses.

I'm in the opposite position - returning from France to the UK in Jan 09 and need to lodge a claim for the 2008-9 tax year. Anyone know what I should be stating my income as ?

The forms explicitly ask for 07/08 taxable income, this includes foreign income. If you're current year income is less than last years then you can ask them to calculate the new award based on your new income.